Monthly Archives: February 2026

Milan Theatres Pvt. Ltd. v. DCIT (2026): Landmark Victory for Real Estate Developers on Project Completion Method and Section 45(2) Consistency

By | February 23, 2026
0 Comment

Milan Theatres Pvt. Ltd. v. DCIT (2026): Landmark Victory for Real Estate Developers on Project Completion Method and Section 45(2) Consistency 1. Rejection of Accounting Method (Section 145) The assessee, a real estate developer, followed the Project Completion Method (PCM), recognizing revenue only when the “Milan Mall” was finished. The Assessing Officer (AO) rejected this,… Read More »

Supreme Court Permits Revenue to Bring Retrospective Clarifications to High Court in Challenge Against JAO-Issued Reassessment Notices

By | February 23, 2026
0 Comment

Supreme Court Permits Revenue to Bring Retrospective Clarifications to High Court in Challenge Against JAO-Issued Reassessment Notices 1. The Core Dispute: Exclusive vs. Concurrent Jurisdiction The central legal question was whether the Jurisdictional Assessing Officer (JAO) has the authority to issue a reassessment notice under Section 148 after the introduction of the Faceless Assessment Scheme… Read More »

Bombay High Court Rules Against Reassessment Based on Audit Objections; Holds Change of Opinion and Limitation Period as Absolute Bars

By | February 23, 2026
0 Comment

Bombay High Court Rules Against Reassessment Based on Audit Objections; Holds Change of Opinion and Limitation Period as Absolute Bars 1. Core Dispute: Audit Objection vs. Full Disclosure The assessee, a company, was originally assessed under Section 143(3) for AY 2016-17, where the Assessing Officer (AO) specifically scrutinized MD remuneration and professional fees. No disallowance… Read More »

IMPORTANT GST CASE LAWS 23.02.2026

By | February 23, 2026
0 Comment

IMPORTANT GST CASE LAWS 23.02.2026 Relevant Section Case Law Title Core Ruling & Strategic Summary Citation Section 74 MCR Marketing v. Assistant Commissioner [Bunching of Years] A Show Cause Notice (SCN) issued for a tax period spanning multiple years is defective. Since adjudication orders are passed for a single year, the SCN must follow the… Read More »

Category: GST

IMPORTANT INCOME TAX CASE LAWS 23.02.2026

By | February 23, 2026
0 Comment

IMPORTANT INCOME TAX CASE LAWS 23.02.2026 Relevant Section Case Law Title Core Ruling & Strategic Summary Citation Section 147 / 149 Sapphire Foods India Ltd. v. ACIT [Audit Objection Shield] Reopening based solely on Audit Party objections regarding previously disclosed expenses amounts to an impermissible “change of opinion.” Notice held time-barred as extended 6-year limit… Read More »

Blocking of Electronic Credit Ledger is a Temporary Measure; Proper Officer Cannot Refuse Adjudication While Keeping Credits Frozen

By | February 21, 2026
0 Comment

Blocking of Electronic Credit Ledger is a Temporary Measure; Proper Officer Cannot Refuse Adjudication While Keeping Credits Frozen 1. The Core Dispute: The “Indefinite Freeze” vs. Right to Trial The petitioner’s Electronic Credit Ledger (ECL) was blocked by the Revenue authorities on the suspicion that Input Tax Credit (ITC) was claimed based on invoices without… Read More »

Category: GST

Appellate Order Quashed: ITC Cannot Be Denied on New Grounds Without Opportunity to Rebut After Supplier Compliance

By | February 21, 2026
0 Comment

Appellate Order Quashed: ITC Cannot Be Denied on New Grounds Without Opportunity to Rebut After Supplier Compliance 1. The Core Dispute: Supplier Default vs. Belated Compliance The assessee’s Input Tax Credit (ITC) was initially disputed because their supplier failed to file GSTR-3B returns for the period August–October 2019. Adjudication Stage: While the case was pending,… Read More »

Category: GST

Assessee Liable for Tax Default Despite Fraud by Chartered Accountant; Agency Principles Bind Principal to Agent’s Actions

By | February 21, 2026
0 Comment

Assessee Liable for Tax Default Despite Fraud by Chartered Accountant; Agency Principles Bind Principal to Agent’s Actions 1. The Core Dispute: Victim of Fraud vs. Statutory Liability The petitioner (Assessee-firm) challenged tax demand orders passed under Section 73. Their primary defense was that they were victims of a criminal fraud committed by their Chartered Accountant… Read More »

Category: GST

Madras High Court Allows Restoration of GST Registration; Financial Hardship Accepted as Genuine Ground for Revocation

By | February 21, 2026
0 Comment

Madras High Court Allows Restoration of GST Registration; Financial Hardship Accepted as Genuine Ground for Revocation 1. The Core Dispute: Technical Default vs. Business Survival The petitioner’s GST registration was cancelled by the department because they failed to file returns for a continuous period of six months. Under Section 29(2), this is a standard ground… Read More »

Category: GST

Retrospective Cancellation Upheld: Camouflaged Transactions and Dual Registration at Same Premises Used to Pass Illegitimate ITC

By | February 21, 2026
0 Comment

Retrospective Cancellation Upheld: Camouflaged Transactions and Dual Registration at Same Premises Used to Pass Illegitimate ITC 1. The Core Dispute: Camouflage and Dual Occupancy The petitioner challenged an order that retrospectively cancelled their GST registration. The Department alleged that the petitioner was involved in a scheme to pass on illegitimate Input Tax Credit (ITC) using… Read More »

Category: GST